Question 1

What are the 4 major factors in joint venture success?

Accepted Answer

1.The accurate assessment of the parties involved to best manage the new entity in light of the ensuing relationships.The joint venture will be more effective if the managers can work well together.Without this chemistry,the joint venture has a low likelihood of success and may even fail.
2.The degree of symmetry between the partners.This symmetry goes beyond chemistry to objectives and resource capabilities.When one partner feels that he or she is bringing more to the table,or when one partner wants profits and the other desires product outlet,problems arise.Good relationships must be nurtured between the managers in the joint venture and those in each parent company.
3.The expectations of the results of the joint venture must be reasonable.
4.The timing must be right.With environments constantly changing,industrial conditions being modified,and markets evolving,a particular joint venture could be a success one year and a failure the next.Intense competition leads to a hostile environment and increases the risks of establishing a joint venture.Some environments are just not conducive to success.

Question 2

Which of the following was not a recommended method of evaluating the potential market for a new franchise in the text?

Accepted Answer

A) Evaluate traffic flow in the area 
B) Hire a marketing firm to survey foot traffic near the proposed location 
C) Locate competitors and their proximity to the proposed franchise location 
D) Evaluate demographics in the area 
A) Evaluate traffic flow in the area 
B) Hire a marketing firm to survey foot traffic near the proposed location 
C) Locate competitors and their proximity to the proposed franchise location 
D) Evaluate demographics in the area B

Question 3

Which of the following is(are)not an advantage of an international joint venture?

Accepted Answer

A) Complimenting governmental policies. 
B) The ease of developing common business objectives. 
C) Ready access to international markets. 
D) Cultural synergy. 
A) Complimenting governmental policies. 
B) The ease of developing common business objectives. 
C) Ready access to international markets. 
D) Cultural synergy. A

Question 4

The best way to "increase the size of the pie" in negotiation is to use a conflict resolution approach.

Accepted Answer

A) True 
 B)False

Question 5

The U.S.Department of Justice frequently issues guidelines for different types of mergers.

Accepted Answer

A) True 
 B)False

Question 6

The person who purchases the franchise is the:

Accepted Answer

A) business architect. 
B) franchisor. 
C) franchisee. 
D) franchise. 
A) business architect. 
B) franchisor. 
C) franchisee. 
D) franchise.

Question 7

Growing a venture through franchising allows the venture to expand quickly using little capital.

Accepted Answer

A) True 
 B)False

Question 8

A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.This can be done on all of the following levels except:

Accepted Answer

A) Optimistic. 
B) Pessimistic. 
C) Probable scenarios. 
D) Logical scenarios. 
A) Optimistic. 
B) Pessimistic. 
C) Probable scenarios. 
D) Logical scenarios.

Question 9

Which franchise below is an example of the most popular type of franchise?

Accepted Answer

A) KFC 
B) An automobile dealership 
C) H&R Block 
D) Real estate franchises 
A) KFC 
B) An automobile dealership 
C) H&R Block 
D) Real estate franchises

Question 10

Identify and describe the three different types of franchises.
A.Dealership - a form commonly found in the automobile industry.Here,manufacturers use franchises to distribute their product lines.These dealerships act as the retail stores for the manufacturer.In some instances,they are required to meet quotas established by the manufacturers,but as is the case for any franchise,they benefit from the advertising and management support provided by the franchisor.
B."Retail" - The most common type of franchise is the type that offers a name,image,and method of doing business,such as McDonald's,Subway,KFC,Midas,Dunkin'Donuts,and Holiday Inn.Note: students may identify as retail,no specific name is given for this type.
C.Service - These include personnel agencies,income tax preparation companies,and real estate agencies.These franchises have established names and reputations and methods of doing business.In some instances,such as real estate,the franchisee has actually been operating a business and then applies to become a member of the franchise.

Accepted Answer

Dealership - a form commonly found in th

Question 11

Which is not a strategy that is used to elicit information about the other party in a negotiation?

Accepted Answer

A) Take up a new negotiation at the end of the first. 
B) Ask lots of questions. 
C) Make multiple offers simultaneously. 
D) Build trust and share information. 
A) Take up a new negotiation at the end of the first. 
B) Ask lots of questions. 
C) Make multiple offers simultaneously. 
D) Build trust and share information.

Question 12

A common procedure for determining a merger's value is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.

Accepted Answer

A) True 
 B)False

Question 13

The most common type of franchise is the dealership.

Accepted Answer

A) True 
 B)False

Question 14

One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:

Accepted Answer

A) a joint venture. 
B) an acquisition. 
C) a subsidiary. 
D) take over. 
A) a joint venture. 
B) an acquisition. 
C) a subsidiary. 
D) take over.

Question 15

Negotiating how the benefits of the relationship will be allocated between the parties is known as the distribution task.

Accepted Answer

A) True 
 B)False

Question 16

In evaluating an LBO's asking price an entrepreneur can use qualitative measures such as evaluating the abilities of key personnel.

Accepted Answer

A) True 
 B)False

Question 17

An acquisition is the purchase of a company,or part of a company,in which the acquired company ceases to exist independently.

Accepted Answer

A) True 
 B)False

Question 18

Synergy is defined as "the intangible benefits of mergers and acquisitions".

Accepted Answer

A) True 
 B)False

Question 19

The __________ is the price at which the entrepreneur is indifferent about whether to accept the agreement or choose an alternative.

Accepted Answer

A) break even price 
B) franchise price 
C) bargaining zone 
D) reservation price 
A) break even price 
B) franchise price 
C) bargaining zone 
D) reservation price

Question 20

Which of the terms in a franchise agreement is the most likely cause of a lawsuit?

Accepted Answer

A) Termination 
B) Exclusivity of territory 
C) Schedule of payments 
D) Initial price of the franchise 
A) Termination 
B) Exclusivity of territory 
C) Schedule of payments 
D) Initial price of the franchise

What are the 4 major factors in joint venture success?

Which of the following was not a recommended method of evaluating the potential market for a new franchise in the text?

Which of the following is(are)not an advantage of an international joint venture?

The best way to "increase the size of the pie" in negotiation is to use a conflict resolution approach.

The U.S.Department of Justice frequently issues guidelines for different types of mergers.

The person who purchases the franchise is the:

Growing a venture through franchising allows the venture to expand quickly using little capital.

A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.This can be done on all of the following levels except:

Which franchise below is an example of the most popular type of franchise?

Which is not a strategy that is used to elicit information about the other party in a negotiation?

A common procedure for determining a merger's value is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.

The most common type of franchise is the dealership.

One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:

Negotiating how the benefits of the relationship will be allocated between the parties is known as the distribution task.

In evaluating an LBO's asking price an entrepreneur can use qualitative measures such as evaluating the abilities of key personnel.

An acquisition is the purchase of a company,or part of a company,in which the acquired company ceases to exist independently.

Synergy is defined as "the intangible benefits of mergers and acquisitions".

The __________ is the price at which the entrepreneur is indifferent about whether to accept the agreement or choose an alternative.

Which of the terms in a franchise agreement is the most likely cause of a lawsuit?

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 14: Accessing Resources for Growth From External Sources

What are the 4 major factors in joint venture success?

Which of the following was not a recommended method of evaluating the potential market for a new franchise in the text?

Which of the following is(are)not an advantage of an international joint venture?

The best way to "increase the size of the pie" in negotiation is to use a conflict resolution approach.

The U.S.Department of Justice frequently issues guidelines for different types of mergers.

The person who purchases the franchise is the:

Growing a venture through franchising allows the venture to expand quickly using little capital.

A common procedure to determine the value of a merger candidate is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.This can be done on all of the following levels except:

Which franchise below is an example of the most popular type of franchise?

Which is not a strategy that is used to elicit information about the other party in a negotiation?

A common procedure for determining a merger's value is to estimate the present value of discounted cash flows and the expected after-tax earnings attributable to the merger.

The most common type of franchise is the dealership.

One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:

Negotiating how the benefits of the relationship will be allocated between the parties is known as the distribution task.

In evaluating an LBO's asking price an entrepreneur can use qualitative measures such as evaluating the abilities of key personnel.

An acquisition is the purchase of a company,or part of a company,in which the acquired company ceases to exist independently.

Synergy is defined as "the intangible benefits of mergers and acquisitions".

The __________ is the price at which the entrepreneur is indifferent about whether to accept the agreement or choose an alternative.

Which of the terms in a franchise agreement is the most likely cause of a lawsuit?

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters